The International Nickel Study Group (INSG) on Thursday forecast a nickel market surplus of 198,000 metric tons for 2025.
The group also forecast global primary nickel usage at 3.537 million tons this year and global primary nickel production at 3.735 million tons.
The market balance in 2023 was a surplus of 170,000 tons, rising to 179,000 tons in 2024, the Lisbon-based group said.
World primary nickel production was 3.363 million tons in 2023 and 3.526 million tons in 2024, with primary usage at 3.193 million tons and 3.347 million tons respectively.
In Indonesia, delays to issuance of mining permits (RKABs) resulted in ore tightness in the nickel market, the report said, adding that the effect of the country’s new royalties on the mining sector has yet to be assessed fully.
Primary nickel output in China is also forecast to increase, driven by additional nickel cathode and nickel sulphate production, the report said.
Prices for nickel, used in stainless steel and electric vehicle batteries, fell by more than 7% in 2024 and is up about 3% so far this year.
(By Anjana Anil and Ashitha Shivaprasad; Editing by David Goodman)
